MP seeks parliamentary review of forex rules with tourism professionals
Ibrahim emphasised the need for direct communication between the government and tourism industry stakeholders.
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Galolhu North MP Mohamed Ibrahim on Wednesday urged the parliament to summon representatives from the tourism sector to address concerns over new dollar exchange regulations implemented by the Maldives Monetary Authority (MMA).
MP Mohamed Ibrahim formally requested the speaker of parliament to hold an economic committee meeting to clarify issues facing the tourism industry in light of recent foreign currency transaction guidelines set by the MMA.
In his letter, Ibrahim emphasised the need for direct communication between the government and tourism industry stakeholders to understand the sector's challenges under the current foreign exchange rules.
The letter outlined the following key points raised by the tourism industry:
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Concerns regarding the obligation for banks to market dollars as required under the new regulations.
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Discontent from the Maldives Association of Tourism Industry (MATI), which claims the MMA has not addressed recommendations provided by the industry during consultations.
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A significant number of tourism businesses missed the initial registration deadline (October 30) to comply with MMA's requirements.
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More than 50 resort operators have submitted letters to the MMA expressing difficulties in meeting the rule requirements.
Ibrahim's letter noted that the rule appears misaligned with the economic realities of the tourism industry and outlined potential financial impacts, presenting calculations to illustrate projected challenges.
Additionally, the letter highlighted concerns raised by Champa Mohamed Moosa, a prominent business leader in the Maldives, whose companies have requested the government to rescind the regulation. Mohamed Moosa expressed that experienced tourism operators, who have contributed to the industry’s growth, should not be disregarded in such significant policy decisions.
In related correspondence, Mohamed Moosa criticised the MMA’s recent foreign exchange rule, stating that it imposes substantial challenges on tourism enterprises. The regulation's restriction on imposing a $500 charge per tourist could lead resorts to exceed their earnings, potentially resulting in financial strain.
